Correlation Between Solowin Holdings and RENN Fund
Can any of the company-specific risk be diversified away by investing in both Solowin Holdings and RENN Fund at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Solowin Holdings and RENN Fund into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Solowin Holdings Ordinary and RENN Fund, you can compare the effects of market volatilities on Solowin Holdings and RENN Fund and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Solowin Holdings with a short position of RENN Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Solowin Holdings and RENN Fund.
Diversification Opportunities for Solowin Holdings and RENN Fund
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Solowin and RENN is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Solowin Holdings Ordinary and RENN Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RENN Fund and Solowin Holdings is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Solowin Holdings Ordinary are associated (or correlated) with RENN Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of RENN Fund has no effect on the direction of Solowin Holdings i.e., Solowin Holdings and RENN Fund go up and down completely randomly.
Pair Corralation between Solowin Holdings and RENN Fund
Given the investment horizon of 90 days Solowin Holdings Ordinary is expected to generate 2.16 times more return on investment than RENN Fund. However, Solowin Holdings is 2.16 times more volatile than RENN Fund. It trades about 0.07 of its potential returns per unit of risk. RENN Fund is currently generating about 0.04 per unit of risk. If you would invest 149.00 in Solowin Holdings Ordinary on December 27, 2024 and sell it today you would earn a total of 22.00 from holding Solowin Holdings Ordinary or generate 14.77% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Solowin Holdings Ordinary vs. RENN Fund
Performance |
Timeline |
Solowin Holdings Ordinary |
RENN Fund |
Solowin Holdings and RENN Fund Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Solowin Holdings and RENN Fund
The main advantage of trading using opposite Solowin Holdings and RENN Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Solowin Holdings position performs unexpectedly, RENN Fund can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in RENN Fund will offset losses from the drop in RENN Fund's long position.Solowin Holdings vs. Franklin Universal Closed | Solowin Holdings vs. Embrace Change Acquisition | Solowin Holdings vs. BlackRock Energy and | Solowin Holdings vs. BlackRock Core Bond |
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Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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